Application of Inventory Model in Determining Stock Control in an Organization

Hycinth Chukwudi Iwu¹, Chukwudi J. Ogbonna¹, Opara Jude^2, and Kalu Georgina Onuma¹

¹Federal University of Technology Owerri Nigeria PMB 1526, Owerri Nigeria

²Department of Statistics, Imo State University PMB 2000, Owerri Nigeria

Cite this paper

Hycinth Chukwudi Iwu, Chukwudi J. Ogbonna, Opara Jude and Kalu Georgina Onuma. Application of Inventory Model in Determining Stock Control in an Organization. American Journal of Applied Mathematics and Statistics. 2014; 2(5):307-317. doi: 10.12691/AJAMS-2-5-3

Abstract

This paper investigates the application of inventory model in determining stock control in an organization. A multi-product Economic Order Quantity model was used to determine the optimal order times. The result of the analysis revealed that J.O. Adimoha's investment does not have a proper inventory management which leads them to sometimes either over stock or under stock. The combination of orders at different time interval was carefully and constantly updated and verified because reorder points and EOQ may change. In conclusion, it was discovered that reorder points often coincides close together.

Keywords

inventory, economic order quantity, average stock, abc analysis, holding cost, safety stock

Copyright

This work is licensed under a Creative Commons Attribution 4.0 International License. To view a copy of this license, visit http://creativecommons.org/licenses/by/4.0/

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